TJX Cashes In On Treasure-Hunt Shoppers, Sweetens Outlook

TJX Companies, Inc. (NYSE:TJX) shares ticked higher in premarket trading on Thursday after the off-price retailer topped profit expectations and delivered another quarter of steady growth.

Investors are also watching a firmer full-year outlook, solid comparable sales trends and a larger share repurchase plan from the T.J. Maxx and Marshalls owner.

The company reported third-quarter earnings per share of $1.28, beating the analyst consensus estimate of $1.22.

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Metrics

Quarterly sales of $15.12 billion (+7% year over year) outpaced the Street view of $14.87 billion.

Marmaxx and HomeGoods U.S. sales grew 7% and 8%, respectively, while TJX Canada and TJX International posted sales growth of 8% and 9%.

Third-quarter consolidated comparable sales increased 5%. “We believe this is a testament to our value proposition and treasure-hunt shopping experience, which continue to draw consumers to our retail banners worldwide,” said CEO Ernie Herrman.

For the third quarter, the company’s pretax profit margin was 12.7%.

Gross profit margin for the third quarter was 32.6%, up one percentage point versus last year’s 31.6%, driven by a higher merchandise margin and expense leverage on sales.

Total inventories as of November 1 were $9.4 billion, compared to $8.4 billion a year ago. TJX Companies generated $1.5 billion of operating cash flow and ended the quarter with $4.6 billion of cash.

Outlook

The company now expects to repurchase approximately $2.5 billion of TJX stock during the fiscal year ending January 31, 2026.

For the fourth quarter, the company continues to plan consolidated comparable sales to be up 2% to 3%. It reaffirmed its fourth-quarter GAAP EPS outlook at $1.33–$1.36, compared with the $1.37 analyst estimate.

TJX Companies lifted its fiscal 2026 GAAP earnings outlook to $4.63–$4.66 per share, up from $4.52–$4.57, topping the $4.60 estimate. The company is now expecting its consolidated comparable sales to be up 4% (prior view: 3%).

Price Action: TJX shares were trading higher by 1.25% to $147.40 at last check Thursday.

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Photo by T. Schneider via Shutterstock